Legislature(2011 - 2012)CAPITOL 106

03/08/2011 03:00 PM House HEALTH & SOCIAL SERVICES


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Audio Topic
03:02:47 PM Start
03:03:20 PM HB1
03:41:45 PM HB78
04:48:11 PM Presentation: Alaska Healthcare Workforce Plan
04:59:08 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 1 POLICY FOR SECURING HEALTH CARE SERVICES TELECONFERENCED
Heard & Held
*+ HB 78 INCENTIVES FOR CERTAIN MEDICAL PROVIDERS TELECONFERENCED
Heard & Held
+ Presentations by: TELECONFERENCED
Delisa Culpepper, Alaska Mental Health Trust
Authority; Karen Perdue, President/CEO, Alaska
State Hospital and Nursing Home Assoc. (ASHNHA);
Jan Harris, Vice Provost, University of Alaska,
Alaska Healthcare Workforce Plan
+ Bills Previously Heard/Scheduled TELECONFERENCED
         HB 1-POLICY FOR SECURING HEALTH CARE SERVICES                                                                      
                                                                                                                                
3:03:20 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER announced that the  first order of business would be                                                               
HOUSE BILL NO.  1, "An Act stating a public  policy that allows a                                                               
person  to choose  or decline  any mode  of securing  health care                                                               
services."                                                                                                                      
                                                                                                                                
3:05:44 PM                                                                                                                    
                                                                                                                                
KAREN  SAWYER, Staff,  Representative  Carl  Gatto, Alaska  State                                                               
Legislature, presented HB 1 and stated:                                                                                         
                                                                                                                                
     This  bill  is not  really  about  health insurance  or                                                                    
     health  care  services,  but it's  rather  about  state                                                                    
     rights.   We  allege that  the new  federal law  passed                                                                    
     last  year,  "Patient  Protection and  Affordable  Care                                                                    
     Act,"  otherwise  also  known as  Obamacare,  infringes                                                                    
     upon the  constitutional rights of U.S.  individuals by                                                                    
     mandating  all   citizens  and  legal   residents  have                                                                    
     qualifying health  care coverage or pay  a tax penalty.                                                                    
     By  imposing  such  a mandate,  this  law  exceeds  the                                                                    
     powers  of the  United States  under the  Constitution.                                                                    
     We're  not challenging  the  authority  of the  federal                                                                    
     government, they've actually  challenged our authority,                                                                    
     and it's  up to us to  defend ourselves.  If  we don't,                                                                    
     this is  just the beginning of  more federal take-over.                                                                    
     Therefore, this  bill will codify as  state policy that                                                                    
     every  person  in the  State  of  Alaska is  and  shall                                                                    
     continue to  be free  from federal government  force in                                                                    
     the  selection of  health insurance  options, and  that                                                                    
     such liberty  is protected by the  constitutions of the                                                                    
     United States and the State  of Alaska.  This bill also                                                                    
     removes  the   authority  of  any  state   official  or                                                                    
     employee from enforcing any  penalty which violates the                                                                    
     policy.                                                                                                                    
                                                                                                                                
3:07:07 PM                                                                                                                    
                                                                                                                                
MS.  SAWYER referred  to the  handout,  titled "HB  1-Explanation                                                               
of:"   [Included  in  members'  packets].   She  stated that  the                                                               
sponsor was agreeable to having  this explanation included in the                                                               
bill.                                                                                                                           
                                                                                                                                
CHAIR KELLER clarified that HB 1,  Version A, was in front of the                                                               
committee.                                                                                                                      
                                                                                                                                
MS. SAWYER,  referring to the "Patient  Protection and Affordable                                                               
Care  Act," reported  that nationwide,  40 state  legislators had                                                               
"introduced  legislation  to  limit, alter,  or  oppose  selected                                                               
federal  actions  regarding  this  bill,  including  single  care                                                               
provisions   and  mandates   that  would   require  purchase   of                                                               
insurance."   She asked that  Alaska join the seven  other states                                                               
which enacted  legislation "to  establish the  individual's right                                                               
in their  state to be  free of  federal government force  to make                                                               
their own choice  about health care."  She quoted  a statement by                                                               
former Supreme  Court Justice Sandra  Day O'Connor  regarding the                                                               
federal regulation of states.                                                                                                   
                                                                                                                                
3:08:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON offered his belief  that HB 1 limited state                                                               
action, not federal action.  As he  did not see any naming of the                                                               
federal government,  he opined that  the requirement was  for the                                                               
state or within the state.                                                                                                      
                                                                                                                                
MS. SAWYER  replied that HB 1  would put into policy  that Alaska                                                               
guaranteed for individuals to have the right to choose.                                                                         
                                                                                                                                
3:10:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON, referring  to an  initiative for  managed                                                               
care on the  Kenai Peninsula, asked if HB 1  would prevent health                                                               
care by a subdivision of the state.                                                                                             
                                                                                                                                
MS. SAWYER offered  her belief that HB 1 prevented  a mandate for                                                               
Alaskans to buy  health care, except for  those provisions listed                                                               
on page 1, line 12.                                                                                                             
                                                                                                                                
3:11:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER asked  to clarify  that the  bill sponsors                                                               
deemed  the  "Patient  Protection  and Affordable  Care  Act"  as                                                               
unconstitutional.    He  stated  that of  the  five  court  cases                                                               
regarding this,  three had ruled  for its constitutionality.   He                                                               
pointed  to the  recent court  ruling in  Florida which  directed                                                               
that  portions  of   the  federal  health  care   act  should  be                                                               
implemented.  He asked if HB 1 was a bit premature.                                                                             
                                                                                                                                
MS.  SAWYER offered  her understanding  that  the recent  Florida                                                               
ruling  was a  7 day  stay  for appeal.   She  declared that  the                                                               
sponsors  still desired  that HB  1 become  a state  policy "that                                                               
will protect us."                                                                                                               
                                                                                                                                
3:13:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER asked  to clarify  that HB  1 stated  that                                                               
Alaskans  are free  to choose  or decline  any mode  of obtaining                                                               
health  care,  but that  HB  1  does  not  apply to  health  care                                                               
services that might be required by the State of Alaska.                                                                         
                                                                                                                                
MS. SAWYER concurred, and she  directed attention to the handout,                                                               
"HB 1-Explanation of:"                                                                                                          
                                                                                                                                
REPRESENTATIVE MILLER opined  that HB 1 stated  that "the federal                                                               
government can't  mandate anything,  but the state  still retains                                                               
its ability to do so."                                                                                                          
                                                                                                                                
MS. SAWYER concurred.                                                                                                           
                                                                                                                                
3:14:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  asked how  HB 1  addressed the  problem of                                                               
uninsured people going to hospital emergency rooms.                                                                             
                                                                                                                                
MS. SAWYER replied  that HB 1 did not address  any provisions for                                                               
health  care service.    She offered  her belief  that  HB 1  was                                                               
"about  just  the  federal government  telling  the  states,  the                                                               
individuals of our  state, that they have to do  something, or be                                                               
taxed."    She  stated  that her  limited  understanding  of  the                                                               
"Patient  Protection  and Affordable  Care  Act"  was that  there                                                               
would  "still be  a significant  number of  individuals who  will                                                               
still not  have health care."   She opined that many  more people                                                               
would be added to Medicaid.                                                                                                     
                                                                                                                                
3:16:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON, reading from  HB 1, summarized that Alaska                                                               
was creating  "a policy  of the  State of  Alaska that  [a person                                                               
has] the right to choose or  decline any mode of obtaining health                                                               
care services  without penalty or  threat of penalty."   Offering                                                               
an  assumption for  the  passage  of HB  1,  he  inquired to  the                                                               
efficacy for the  passage of a policy to stop  any chosen federal                                                               
law or mandate to which some people disagree.                                                                                   
                                                                                                                                
MS. SAWYER  replied that  HB 1 could  set an  important precedent                                                               
for future  federal mandates.   She declared  that Alaska  was an                                                               
important state to the federal government.                                                                                      
                                                                                                                                
3:17:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT  asked how many states  had passed similar                                                               
legislation.                                                                                                                    
                                                                                                                                
MS. SAWYER replied that seven states had similar legislation.                                                                   
                                                                                                                                
REPRESENTATIVE  MILLETT  asked   about  any  anticipated  federal                                                               
response.                                                                                                                       
                                                                                                                                
MS. SAWYER  offered her belief  that the federal  government "was                                                               
just waiting  to see what's  going to  happen."  She  opined that                                                               
even with passage  of the Patient Protection  and Affordable Care                                                               
Act, there  was no enforcement  to non-compliance.   She declared                                                               
that  President  Obama  had  relaxed   some  of  his  provisions,                                                               
allowing states to offer alternative choices.                                                                                   
                                                                                                                                
3:19:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT  asked to clarify that  greater opposition                                                               
to the federal health care act  would lead to removal of the more                                                               
stringent requirements.                                                                                                         
                                                                                                                                
MS. SAWYER offered her belief that  a majority of the country was                                                               
opposed to the mandate, and that would make a difference.                                                                       
                                                                                                                                
3:21:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MILLER  asked   whether   there   was  a   state                                                               
requirement for vaccines to children attending public school.                                                                   
                                                                                                                                
MS. SAWYER offered her belief that  it was a requirement, and, in                                                               
response to Representative Miller,  she relayed that the vaccines                                                               
would still  be required.   She emphasized the importance  of the                                                               
list on the handout.                                                                                                            
                                                                                                                                
3:21:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLER,  referencing the vaccines, asked  if there                                                               
were any health mandates that came from federal legislation.                                                                    
                                                                                                                                
MS. SAWYER replied that she would look into it.                                                                                 
                                                                                                                                
3:22:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER, referring  to the  mandatory vaccine  for                                                               
smallpox  in 1969,  opined  that  HB 1  would  allow  him to  now                                                               
decline anything similar.                                                                                                       
                                                                                                                                
MS.  SAWYER, referring  to  (9)  of the  handout,  said that  the                                                               
committee could include something to cover this.                                                                                
                                                                                                                                
3:23:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLER  offered his  belief that vaccines  for any                                                               
naturally occurring  diseases, listing HIV,  tuberculosis, polio,                                                               
malaria, or dengue fever, would not be mandatory under HB 1.                                                                    
                                                                                                                                
MS.  SAWYER  opined  that vaccinations  were  not  mandatory  for                                                               
Alaskans.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  MILLER agreed,  stating that  HB 1  would enforce                                                               
that, no matter whether public health was threatened.                                                                           
                                                                                                                                
3:24:37 PM                                                                                                                    
                                                                                                                                
MS. SAWYER  declared that even  knowingly having a  disease still                                                               
did not mandate a vaccination.                                                                                                  
                                                                                                                                
REPRESENTATIVE  MILLER, directing  attention to  page 2,  line 3,                                                               
suggested the addition of prevention.                                                                                           
                                                                                                                                
3:25:14 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER opened public testimony.                                                                                           
                                                                                                                                
3:26:17 PM                                                                                                                    
                                                                                                                                
PAT  LUBY,  Advocacy Director,  AARP,  declared  that "many  well                                                               
meaning people have completely opposite  positions on the federal                                                               
health care reform bill, especially  the individual mandate."  He                                                               
pointed out  that people had  declined health insurance  for many                                                               
years.    He noted  that  many  others, including  older  people,                                                               
wanted health insurance but could not  secure it.  He stated that                                                               
19 percent  of Alaskans  between 50  and 64  were uninsured.   He                                                               
reported  that the  uninsured  ended up  in  the emergency  room,                                                               
which was  paid for  by those  who had  insurance.   He estimated                                                               
that  every Alaskan  family spent  $1900  annually toward  people                                                               
without insurance.   He emphasized that the State  of Alaska, and                                                               
private employers who provided insurance,  among others, paid for                                                               
the uninsured, as the costs  were shifted to those with coverage.                                                               
He pointed out that proposed HB  1 would continue the practice of                                                               
cost shifting.                                                                                                                  
                                                                                                                                
3:28:33 PM                                                                                                                    
                                                                                                                                
MR. LUBY relayed the  story of an accident to a  54 year old with                                                               
no health  insurance.   He defined cost  shifting as  the payment                                                               
for these incidences by those who  did have health insurance.  He                                                               
declared that HB  1 had nothing to do with  freedom of choice, it                                                               
had to  do with cost shifting.   He established that  the Patient                                                               
Protection  and Affordable  Care  Act would  subsidize those  who                                                               
could not afford  health insurance.  He affirmed that  HB 1 would                                                               
continue cost shifting to those who did have insurance.                                                                         
                                                                                                                                
3:30:06 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER  asked which  was more  important, choice  or paying                                                               
your own  way.  He offered  his belief that it  was unprecedented                                                               
for any  government to  declare that  it was  mandatory to  buy a                                                               
commodity or a service.                                                                                                         
                                                                                                                                
MR.  LUBY  compared  the  federal   health  care  act  to  social                                                               
security,  and   stated  that  it  provided   for  retirement  or                                                               
disability.  He noted that it  was mandatory, and it ensured that                                                               
the  public would  not have  to provide  for an  individual.   He                                                               
indicated that this was the  basis for the Patient Protection and                                                               
Affordable Care Act.                                                                                                            
                                                                                                                                
3:31:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  to  clarify that  if an  individual                                                               
declined  health insurance,  they  would be  responsible for  any                                                               
costs incurred.                                                                                                                 
                                                                                                                                
MR.  LUBY  replied that  the  Supreme  Court  had ruled  that  an                                                               
individual had to be treated; however,  the cost would be paid by                                                               
those with insurance.                                                                                                           
                                                                                                                                
3:33:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON, pointing to  line 10, referred to "without                                                               
penalty or  threat of penalty,"  and asked if this  could include                                                               
personal liability as an individual consequence.                                                                                
                                                                                                                                
MR. LUBY  determined that the  only exclusion within  the Patient                                                               
Protection and  Affordable Care Act  was to decline  the purchase                                                               
of insurance  for religious  reasons.   He explained  the sliding                                                               
scale for  payment of basic  health coverage, and  confirmed that                                                               
there  was  a   tax  penalty  for  failure   to  purchase  health                                                               
insurance.   He declared that even  the payment of a  tax penalty                                                               
would still require hospital payment by someone else.                                                                           
                                                                                                                                
3:35:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  declared  that proposed  HB  1  concerned                                                               
itself  with a  policy of  the state,  and not  with the  Patient                                                               
Protection and Affordable  Care Act.  He questioned  whether HB 1                                                               
removed personal  liability for an individual  who refused health                                                               
insurance.  He asked Mr.  Luby if inclusion of personal liability                                                               
would address some of the AARP concerns.                                                                                        
                                                                                                                                
MR.  LUBY  opined  that  the health  exchange  would  offer  many                                                               
choices,  and  that some  individuals  would  choose to  pay  the                                                               
penalty and pay for their own health care costs.                                                                                
                                                                                                                                
3:38:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  asked  if  proposed  HB  1  would  affect                                                               
federal  law.    He  questioned  whether a  lawsuit  would  be  a                                                               
substitute for the bill.                                                                                                        
                                                                                                                                
3:38:39 PM                                                                                                                    
                                                                                                                                
SIGNE  ANDERSON, Chief  Assistant  Attorney  General -  Statewide                                                               
Section  Supervisor,  Commercial/Fair   Business  Section,  Civil                                                               
Division (Anchorage),  Department of Law (DOL),  replied that the                                                               
state was  already a party  to a lawsuit challenging  the Patient                                                               
Protection and Affordable Care Act.   She offered her belief that                                                               
proposed HB 1 was a policy statement in support of the lawsuit.                                                                 
                                                                                                                                
3:39:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON, referring  to page  1, line  9, asked  if                                                               
"decline  any  mode of  obtaining  health  care services  without                                                               
penalty  or  threat  of  penalty"  could  be  amended  to  ensure                                                               
personal  liability for  the costs  associated  with health  care                                                               
service.                                                                                                                        
                                                                                                                                
MS. ANDERSON  replied that  HB 1  could be  amended.   She stated                                                               
that  the definition  of  "penalty" only  included  a fine,  tax,                                                               
surcharge  fee, or  similar.   She  declared  that all  ambiguity                                                               
could be removed with an amendment.                                                                                             
                                                                                                                                
3:40:25 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER closed public testimony.                                                                                           
                                                                                                                                
3:40:49 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER  commented that HB 1  "is so easy to  understand" if                                                               
individuals take  responsibility for paying for  their own health                                                               
care.                                                                                                                           
                                                                                                                                
[HB 1 was held over.]                                                                                                           
                                                                                                                                

Document Name Date/Time Subjects
01 HB 1 Sponsor Statement 2-22-2011.docx HHSS 3/8/2011 3:00:00 PM
HB 1
02-HB0001A Alaska Healthcare Freedom Act.pdf HHSS 3/8/2011 3:00:00 PM
HB 1
03 HB001-DHSS-HCMS-02-24-11 Fiscal note.pdf HHSS 3/8/2011 3:00:00 PM
HB 1
04 The Truth About the Health Care Bills 8-2009.pdf HHSS 3/8/2011 3:00:00 PM
05 Severability Clause at Heart of Judge Vinson.docx HHSS 3/8/2011 3:00:00 PM
06 H0391SOP.pdf HHSS 3/8/2011 3:00:00 PM
07 H0391LegCo.pdf HHSS 3/8/2011 3:00:00 PM
08 H0391.pdf HHSS 3/8/2011 3:00:00 PM
11 State Legislation & Actions Challenging Certain Health Reforms, 2010-11 (State Activity).mht.pdf HHSS 3/8/2011 3:00:00 PM
01 - HB 78 Incentives for Certain Medical Providers 27-LS0147 B (2).pdf HHSS 3/8/2011 3:00:00 PM
HB 78
02 - HB 078 sponsor statement 27-LS0147 B.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
03 - HB 078 sectional summary 27-LS0147 B.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
04 - HB078 HCPLRIP concept proposal.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
05 - HB 078 Alaska Health Workforce Vacancy Study.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
06 - HB 078 Mar2009 ISER study (2).pdf HHSS 3/8/2011 3:00:00 PM
HB 78
HB078 Fiscal Note-EED-ACPE-03-03-11.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
09 H0391A1.pdf HHSS 3/8/2011 3:00:00 PM
14 NFIB support HB 1.pdf HHSS 3/8/2011 3:00:00 PM
HB 1
10 Goldwater Institute Applauds Health Care Victory Goldwater Institute.mht HHSS 3/8/2011 3:00:00 PM
12 Georgia General Assembly Healthcare Act SB 411.mht HHSS 3/8/2011 3:00:00 PM
SB 411
13 AARP opposition to HB1.pdf HHSS 3/8/2011 3:00:00 PM
HB 1
HB078-DHSS-HPSD-03-04-11 fiscal note 2.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
07 - HB 078 Pathman research (2).pdf HHSS 3/8/2011 3:00:00 PM
HB 78
08 - HB 078 ACoA support letter 2 9 2011.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
09 - HB 078 APCA support resolution 9 16 2010.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
10 - HB 078 AK Pharmacists Association support letter 2 1 2011.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
11 - HB 078 Iliuliuk FHS support letter 2 9 2011.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
12 - HB 078 Mat-Su Health Foundation support letter 2 18 2011.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
13 - HB 078 Sunshine CHC support letter 2 9 2011.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
14 - HB 078 Dr J McDonald support letter 3 2 2011.pdf HHSS 3/8/2011 3:00:00 PM
HB 78
Alaska's Health Workforce - Legislative PresentationV2.pptx HHSS 3/8/2011 3:00:00 PM